Oracle Corporation (ORCL) Stock: Shares Soar to Record High After Earnings Beat

TLDR

Table of Contents

Oracle (ORCL) stock hit an all-time high of $202.44 after beating Q4 earnings expectations with $15.9 billion revenue versus $15.6 billion projected
The company raised fiscal 2026 revenue guidance to “at least $67 billion” from previous $66 billion forecast
Oracle plans $25 billion in capital expenditure for fiscal 2026, well above Wall Street’s $20 billion estimate
Multiple analysts raised price targets with some reaching as high as $240 following the earnings beat
Oracle is investing $7 billion in the Stargate AI project despite reported obstacles from trade tensions

Oracle stock jumped more than 13% on Thursday to close at a record $199.87. The database giant crushed Wall Street expectations for its fiscal fourth quarter.

Shares touched an all-time intraday high of $202.44 during trading. The rally came after Oracle reported better-than-expected results across key metrics.

The company’s adjusted revenue hit $15.9 billion, beating the projected $15.6 billion. Earnings per share came in at $1.70, surpassing the expected $1.64.

$ORCL | Oracle is +7.7% after-hours
🔹 EPS: $1.70 vs. $1.64 est. ✅
🔹 Revenue: $15.90B vs. $15.58B est. ✅
Key takeaways:
🔸 Cloud services rev: +14% YoY
🔸 Infrastructure rev: +52% YoY
🔸 Total RPO: +41% YoY
🔸 FY cloud rev outlook: +40% YoY
🔸 FY infra rev outlook: +70% YoY pic.twitter.com/5hAqNtK9L6
— CMG Venture Group (@CmgVenture) June 11, 2025

Oracle’s cloud services drove much of the outperformance. CEO Safra Ada Catz highlighted growing demand for AI cloud infrastructure during the earnings call.

“What is clear is that more customers will use the Oracle database to leverage AI,” Catz told analysts. The company sees this trend accelerating through fiscal 2026.

Oracle raised its annual revenue forecast based on strong AI demand. Catz now expects fiscal 2026 revenue to reach “at least $67 billion,” up from prior guidance of $66 billion.

The results marked a turnaround after two consecutive quarters of missed expectations. Oracle had fallen short on both revenue and earnings in the previous two quarters.

Massive Capital Investment Plans

Oracle outlined aggressive spending plans for the coming year. The company forecast $25 billion in capital expenditure for fiscal 2026, well above Wall Street’s $20 billion estimate.

Catz suggested even this figure “may turn out to be understated.” The spending will focus on expanding cloud infrastructure capacity.
Chairman Larry Ellison made a bold prediction during the analyst call. “We will build and operate more cloud infrastructure data centers than all of our cloud infrastructure competitors combined,” he said.

The heavy investment comes as Oracle pursues major AI projects. The company is investing $7 billion in the Stargate AI initiative, though the project faces some challenges.

Catz acknowledged the project remains in early stages. “So the reality is that Stargate is still in formation,” she said during the call.

Wall Street Raises Price Targets

Multiple investment firms boosted their Oracle price targets following the results. JPMorgan, Jefferies, UBS, and Deutsche Bank all raised their targets, with some reaching as high as $240.

Jefferies analyst Brent Thill increased his target to $220 from $200. He maintains a Buy rating on the stock despite valuation concerns.

JPMorgan’s Mark Murphy raised his target to $185 from $135 but kept a Neutral rating. Murphy noted Oracle’s AI progress while expressing caution about valuation levels.

Piper Sandler’s Brent Bracelin lifted his target to $190 from $130. He said Oracle has entered “an entirely new wave of enterprise popularity” not seen since the late 1990s internet boom.

Oracle currently trades at 32 times projected 2026 earnings. This compares to Microsoft’s forward price-to-earnings ratio of 29 times for the same period.

The company’s cloud infrastructure revenue could reach $20 to $25 billion annually by fiscal 2026 end. This would represent substantial growth from the $12 billion reported in the most recent quarter.

Oracle’s remaining performance obligation backlog provides visibility into future growth. The backlog supports management’s optimistic revenue projections for the coming year.

Oracle’s capital expenditure forecast for fiscal 2026 of $25 billion was ahead of Wall Street’s $20 billion estimate, with management suggesting it could be even higher.

Stay Ahead of the Market with Benzinga Pro!

Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders: